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. it is tax hikes on every household. today california leaders said the voters have spoken, but it is not clear if lawmakers can return to washington and work together. congresswoman nancy pelosi spent the day mixing and mingling at the presidio. but fixing the country's finances was on her mind. >> we have a deficit we have to deal with. we have to do it with growth and the creation of jobs. we have to do it with cuts. we all know that, but we have t.o. do it with revenue. >> reporter: she will be returning to capitol hill pushing a deal backed by barack obama. that will include tax hikes on wealthier households. republicans who still control the u.s. house of representatives have started to dig in. >> raising tax rates will slow down our ability to crow 80 the jobs everybody wants. >> reporter: what are the consequences if law i can makers cannot make a deal. >> the fiscal clip is very bad if it happens. it means we could have a huge recession next year. >> reporter: if scheduled budget cuts are imposed an estimated 400 government jobs could be slashed and about 400,000 j
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